1.12.2012

Pertinent Information Regarding Business and Finances

This post has been brewing for some time now, and although I've already posted once today, I feel the need to air myself out in order to set the record straight.

I know for a fact that I am not alone in my feelings and that I speak for many people in various areas of business.

Especially my photog friends. I have several friends who have become very successful in their photography businesses and I am certain the feeling is mutual as to the remarks and comments received regarding their pay scale.

Most people have not a clue how expensive photography equipment is. Just to enlighten one should there be any un-informed, ONE lens worthy of fine portraiture bears a price tag of NO LESS than $1300. That's just a lens, no camera, no CF card, no tripod, no filters, no reflectors, nothing but a lens.

That's not to mention the cost of advertising and the expense of editing software, a computer good enough to handle large files, a calibrated monitor and the list goes on and on. Then there's skill building expenses and website design costs. We are talking thousands of dollars invested in a business and yet people have the audacity to make comments like "must be nice to rake in $4000 for a wedding-not bad for one days work"
These remarks chap my everlivin' hide! Some people have no idea of the hours, blood, sweat, and tears an individual has invested into their business. It did not create itself overnight without hard work and dedication.

Anyway, I do a little photography on the side here and there, mostly as a hobby because I enjoy it. But with my busy lifestyle and schedule, I can't afford to do pro bono work so I do charge nominal fees to warrant my time and I still get people acting like I'm rolling in extra cash with 2-3 little shindigs a year.

That wasn't even what I wanted to talk about in this post-that's just a smidge.

My primary direction is that of my business in breeding Australian Labradoodles. Yes, I breed them. Does that mean I just own a girl and a boy and let them get after it in the backyard, pop out some pups then turn around and sell them for $2500 a piece? Absolutely 100% emphatic NO.

Let's back up a bit. First of all, 8 years ago we lost our house due to sickness and job loss. While we have not starved (obviously) we have struggled financially ever since. We believe God is for us and will bless us if we are in alignment with His perfect will and purpose for our lives. Just like anyone, we are continually striving to find that place with Him.

Through much prayer and research, I was led to the opportunity to begin breeding these dogs. Now mind you, you can read all about our start at www.theaustralianlabradoodles.com
I am not going to go into the details here as to why someone would pay $2500 for a dog, that's up to you to research because frankly, I don't care if you understand that or not. It's a fact that people do indeed buy these dogs for that amount of money just like they will shell out $10,000 for a ring or $50,000 for a wedding. People who have money want to spend it. That's not to say however, that it's a market to jump into and expect that sort of profit to drop into your bank account. There are many aspects to be aware of and that is what I'd like to address here in this post.

First of all, when I began researching this breed, I wanted my first dog to come directly from Australia. That would cost me a mere $25,000. That didn't include a website, and all the other necessities for starting a business. I did not have that sort of money lying around to invest. So I prayed about it. I kept researching and looking into local breeders. I found one in the US I thought I would buy. My dad was going to help me make the purchase and then I'd pay him back. An intact (not spayed or neutered) Australian Labradoodle here in the states costs anywhere between $8,000-$15,000. However, at the last minute, the breeder backed out of the deal. I really don't know why but I do know you have to create a camaraderie with the breeders around. Kinda like a new kid on the block-you have to fit in and if you don't, well, then breeders back out of deals with you because they don't know you and are hesitant to let you in their circle. Crazy I know but it's a fact.
So apparently I wasn't there yet.

So I gave it even more time. And prayer. My kids really wanted a dog. I really wanted them to have one. But I also needed a way to make some sort of income at the same time. Kept praying.

Eventually, I came in contact with another breeder who agreed to take me in as sort of an apprentice. She allowed me to purchase a dog from her and make payments. So my first female dog cost $9,000. I know I know it's crazy but that's just how it is so get over it. ;)

Now, when I breed my dog: I do not own a male. I don't want to own a male for reasons I won't delve into here. So when I breed her I pay a stud fee. A stud fee is never less than $1500. Plus artificial insemination cost because otherwise each dog needs expensive testing in order to be physical. (yes, it's mandatory testing protocol in order to belong to the founders association-another area I will refrain from expounding upon)

So count that $150 plus travel expenses to and from San Diego as that's the only canine Cryobank in California.

Oh and in order for a dog to be bred in the first place, he or she must go through a series of very expensive tests. To the tune of 3-4 tests at $400 each. Yes indeed.

Oh and don't forget, in order to do AI, the female dog needs progesterone testing done to accurately time the breeding and that test is $90. Usually several tests are needed.

Ok so the dog is bred and now we have 4 puppies to sell. $2500 each or $2750 if they are rare colors. (all mine happen to be this time)

We spay them which is $120 each. We microchip them which is $50 each. We give them all their shots, we de-worm them, we start their basic training, and we do much much more in order to ensure our customers get the best start with their new dog. It adds up people! Not only do the expenses add up, have you noticed there is also a lot of knowledge required to do this? This did not evolve overnight. This took years and years of research and learning and gleaning from books and websites to become knowledgeable enough to enter this arena.

So, if one is inclined to do that research and become educated in this business then by all means go for it!

Now, I didn't spell out all the costs to have everyone counting it out and doing the math as there is still profit in the business. But a dog can only have 2 litters per year. Even if we net $8,000 per litter how would you like to live in $16,000 for your years salary? It ISN'T pie in the sky folks!

There are weeks when we live on $50 that comes into our church. Our church is very small and does not support us full time. My husband has worked many jobs to supplement our income but things do not always go as planned. So while we are grateful for this opportunity to supplement what we do have coming in, it's not by any stretch of the imagination something that's dumping great loads of wealth in our laps.

So the next time someone refers to my dog as "moneybags" I'll direct them here! And in turn make mention of their job that pays a regular salary with benefits and bonuses...we all work hard for our money and it doesn't come easy to anyone that I know for sure!

I sincerely hope I've enlightened someone as to the wherewithal when it comes to breeding animals. It's simply a job like anyone else's. With costs, overhead, ups and downs. It's not easy street or a quick money maker.

(((sigh))) I feel so much lighter now!

2 comments:

Chandra said...

It's funny how people are quick to base their knowledge on mere assumptions of a subject. I'm sure you cleared up any misconceptions for anyone who turned up their egotistical nose at you and your job. Thanks for the transparent post. I'm browsing through your blog now.

Chandra
MoMoMod.com

Maggie Hogan said...

Well said. And true of so many home businesses - people make ridiculous and/or misguided assessments with no factual knowledge.
Blessings,
Maggie

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